During FY14, TCS profitability grew 37.7%, helped by growth in European markets and investments in digital technologies

Tata Consultancy Services (TCS), India's largest IT company, in FY14 posted 37.7% higher net profit despite the fact that its revenues grew 29.9% due to growth in its European markets and investments in digital technologies.

For the 12 month to end-March, TCS said its consolidated net profit increased 34.7% to Rs19,164 crore from Rs13,914 crore, its total revenues grew 29.9% to Rs81,809 crore from Rs62,989 crore a year ago period. TCS recorded 17.39% volume growth during FY14.

TCS in its regulatory filing said, there was holistic growth across markets and industries during the financial year. Europe led the growth in major markets, while UK and North America continue to grow in line with the company average. All major industry verticals grew in double digits led by Retail, Manufacturing, Life Sciences & Healthcare and BFSI during FY14. TCS’ full services capabilities continue to be leveraged by customers with new service lines growing at a fast pace led by Infrastructure Services, Assurance Services, Global Consulting and Enterprise Solutions.

TCS' chief financial officer, Rajesh Gopinathan said, “Our focus has been to stay disciplined in operations while supporting business growth across multiple markets, industries and technologies. We enhanced our profitability to industry leading levels despite macro and currency volatility through the year. We are continuously investing to stay ahead of the curve.”

In its quarter to end-March TCS net profit increased 48.2% to Rs5,358 crore from Rs3,616 crore, its total revenues grew 31.2% to Rs21,551 crore from Rs16,430 crore a year ago period.

During FY14, TCS $100million+ clients rose to 24 from 17 in FY13. TCS has launched a unique all-female business process service center in Kingdom of Saudi Arabia. TCS also started two new 10,000 seat campus in Gandhinagar as well as Trivandrum. TCS added 61,200 employees during FY14 making its total count to be 3,00,464 employees.

“We have delivered strong growth and strengthened our competitive positioning in the market. We have maintained our momentum, improved our quality of growth, deepened our relationship with customers and expanded our presence in newer markets like Europe during the past 12 months. Our strategic investments including those in Digital Technologies are providing a compelling value proposition as well as helping us anticipate and shape new market trends successfully,” said TCS chief executive officer and managing director, N Chandrasekaran in a regulatory filing.

TCS also declared final dividend of Rs20 per share.

TCS on Thursday at 1.00pm, was trading 0.77% up at Rs2,212 on the BSE, while the 30-share benchmark Sensex was marginally up at 22,443.

For more stock results, check out this page